Rotation from Cash to Equities Among Major Investor Categories vs. Change in the U.S. 10-Year Treasury Yield Historically, investors tend to rotate from cash to equities when rates rise. Image: Goldman Sachs Global Investment Research
S&P 500 and Bank Reserves U.S. excess liquidity is expected to rise significantly and tends to push equities higher. Image: Nordea and Macrobond
Fund Flows in Different Real Rate and Breakeven Inflation Environments Equity funds tend to experience net inflows when real rates rise. Image: Goldman Sachs Global Investment Research
Announced IPOs Including SPACs Will 2021 be the year of the SPAC bubble? Image: J.P. Morgan
Euro to U.S. Dollar (EUR/USD) After U.S. Presidential Inaugurations In recent history, the EUR/USD tends to drop on average after U.S. Presidential inaugurations. Image: Nordea and Macrobond
Big Tech Stocks – Central Bank Liquidity and Market Capitalization of Apple, Amazon, Facebook, Google, Microsoft, Netflix and Tesla Central bank liquidity tends to push big tech stocks higher. Image: BofA Global Research
Total Return of U.S. 10-Year Tresury Index in January/February Each Year Since 1830 U.S. 10-year Treasuries had their third worst start to a year in 190 years. Image: Deutsche Bank
Coronavirus – Global COVID-19 Cases vs. Global Vaccines Administered Global vaccinations far exceed global COVID-19 cases. Image: BofA Global Investment Strategy
Cash – Cumulative Increase in Savings Deposits at Commercial Banks Household excess liquidity remains strong. Is it a contrarian bullish signal for stocks? Image: Morgan Stanley Wealth Management
Valuation and Inflation Investors in equities should fear too much inflation and deflation, as the sweet spot for inflation is about 2% per year. Image: Fidelity Investments
Sentiment – VIX and U.S. Equity Put/Call Ratio The divergence between the VIX and the put/call ratio could suggest a market susceptible to a downside shock. Image: Morgan Stanley Wealth Management